TIME, CAPITAL AND THE STRUCTURE OF PRODUCTION
The doctrinal monopolizing of the modern economic theory by supporters of Monetarism and Keynesism deprived it by one of its essential components- the capital theory. Emphasising the role of monetary and fiscal policies has diverted the concerns for real economy and its productive structures. It...
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| Format: | Article |
| Language: | English |
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Academica Brâncuşi
2014-05-01
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| Series: | Analele Universităţii Constantin Brâncuşi din Târgu Jiu : Seria Economie |
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| Online Access: | http://www.utgjiu.ro/revista/ec/pdf/2014-02/30_MIfrim.pdf |
| Summary: | The doctrinal monopolizing of the modern economic theory by supporters of Monetarism and Keynesism
deprived it by one of its essential components- the capital theory. Emphasising the role of monetary and fiscal
policies has diverted the concerns for real economy and its productive structures. It was constantly overlooked that
any fluctuation in the monetary economy is soon translated into fluctuations in the real economy, in its structure of
production.This reality requires the inclusion, in any serious analysis of the cyclical fluctuations, of the capital
theory and of the role of time in the processes of production. The paper aims to highlight how the structure of
production responds to interest rate cuts by extending, simultaneous, investment and consumption. We obtain the
picture of an economy that works beyond the limits imposed by its resources, which justifies the emergence of
economic crises and depressions.
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| ISSN: | 1844-7007 1844-7007 |